India’s once most valuable startup, Byju’s, has been struggling financially and facing delays in salary payments. The National Company Law Tribunal (NCLT) has ordered the company to pay salaries regardless of access to funds raised through a rights issue, threatening an audit by ICAI if they fail to comply. The delay is attributed to funds being tied up in escrow and lawsuits from vendors.
Byju’s founder and CEO, Byju Raveendran, has reportedly taken on personal debt to cover March salaries for employees. The company previously experienced salary delays in February and March, due to funds raised through a rights issue being held in escrow as part of a dispute at the National Company Law Tribunal (NCLT). The NCLT is hearing a case brought by four investors who allege oppression and mismanagement in Byju’s $200 million rights issue.
